Non-Renewal of Lease - Inherited Tenant & New Landlord

[Joe Arida]

Hi Everyone!

I am currently in the process of buying my first property -- a duplex! It is fully rented, I am inheriting tenants (I know...), but I am not too worried about that for a few different reasons. 

Anyway, I am buying this to owner occupy. The leases expire next June, and in order for the bank to underwrite the an owner-occupied loan I need to move in when the lease expires. I have to sign an intent to occupy the property (no big deal) and also.........give a notice of non-renewal of lease to the side I am to occupy, which the tenants must sign. The worst part is that they just moved in two weeks ago...so I feel a little bad giving them the notice literally two weeks after they moved in -.-

This makes me a little nervous! Also it brings the following questions for those of you with more experience :)

• They are not my tenants yet, so how should I give this notice, knowing they will still be my tenants for another 7 months? 
  • I don't want to be the mean new landlord who bought the property and doesn't care at all...should the current landlord to give this notice and get it signed? After I take over I'll be introducing myself to them anyway, at which point if necessary I can explain why the lease wasn't renewed. 
  • Should I ask to meet the tenants before closing to get the document signed? I keep going back and forth as to whether this is a terrible idea or not lol. 
• Also...what kind of notice should I give them? Should this just be a standard, vanilla "This formal notice....blah blah...I will not be renewing our Lease Agreement...sincerely, landlord", or should it just be a "I, <tenant sign here>, have been notified that the Lease Agreement will not be renewed and will vacate the property by xxxx, 2018"

Am I just really overthinking this? How would you go about the situation? 

[Marian Smith]

When you introduce yourself tell them yourself in person. apologize somewhat profusely and tell them it is the bank requirement of the loan (non-negotiable). Tell them you wanted to give them as much advance notice as possible but that also you look forward to a pleasant working relationship, etc and to let you know if they need anything. Exchange phone numbers etc. You also may want to give the non-renewal a reason for them vs other side. That is the hard one. Maybe first ask if either plans to move. If not, choose the tenant with least seniority...if that is the unit you want to live in. Good luck and remember, you sign a 1 year lease and you are guaranteed 1 year only.